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Archive for January, 2016

You MUST save for retirement...

January 31st, 2016 at 03:29 pm

Saving for retirement is a pain. If you're 30 and you're putting that money aside, it's money you can't really touch for 35 years or so. And besides, you'll make more later when it's more affordable for you, etc.

But here is the *really* sad truth. 50% of the people over 55 have no retirement savings at all. And today, companies aren't helping you out with pension plans. In fact many companies are hiring people as independent contractors, so you can't even participate in their 401k plans.

Yeah, but how long are you going to live? 75? You can afford that. But you are probably going to live a lot longer than you expect. The odds are, a married couple that is 65 and relatively health, they have a 25% chance of one of them making it to 95! That's today. As healthcare continues to improve, those numbers will go up.

Ok you say, but you are going to work until you're 80. But two problems. First, maybe you can't. It's very common because of arthritis, alzheimer's, cancer, etc, etc, that you can't keep working. Second, it may be that companies don't want you. They don't want a person who is 75 if they can get someone who is 25. Many people plan on working after 65 and find it very difficult.

You *must* save for retirement. You just gotta. I know it's hard, believe me. But you need to start early and you need to save a bunch. I'll give you a few ideas about how to proceed in the next few tips.

Best Rates on Savings

January 6th, 2016 at 07:37 am

The best rates on savings right now are with the online banks such as ally.com and mysavingsdirect.com

The yield on these accounts is around 1%, require no long term commitment, and are FDIC insured. 1% isn't much. However, considering that brokerage money markets yield less than 1/4%, and the best 6 month CDs are in the 1/2% range, and 1% looks pretty good.

The other thing, is that if the Federal Reserve continues with their plan, they will raise interest rates about 1% this year. So that 1% may be closer to 2% by year end. Still not great, but for super safe savings, it's the best deal going.